David Miliband organisation run by Labour’s candidate in Wythenshawe and Sale East fined over unlawful donations

An organisation set up by David Miliband and run by Labour’s candidate in
today’s Wythenshawe and Sale East by-election has been fined by the
electoral watchdog for accepting hundreds of thousands of pounds of unlawful
donations.

Mike Kane, Labour's candidate in the Wythenshawe and Sale East by-election, has been Movement for Change's acting chief executive since last July. The unlawful fines were received before thenPhoto: LNP

An organisation set up by David Miliband and run by Labour’s candidate in today’s Wythenshawe and Sale East by-election has been fined by the electoral watchdog for accepting hundreds of thousands of pounds of unlawful donations.

The watchdog ruled out the donations, which were given between December 2011 and April 2013 because Lord Sainsbury was not on the electoral register then.

Peter Horne, the Commission’s director of Party and Election Finance, said: “These organisations failed to check a donor was on the electoral register and have been fined because of it.

“The fines reflect the lengthy amount of time it took both organisations to realise their mistake.

“We do not think this was a deliberate attempt to evade the rules and both organisations have now put in place new procedures intended to prevent this happening again.”

The Commission said the fines had been paid in full. The donations were not required to be repaid in full because the law in the area is unclear following a recent ruling in the Supreme Court involving a donation to the UK Independence Party.

A spokesman for Movement for Change and Progress said: “We are grateful that the Electoral Commission has acknowledged that ‘both organisations had acted in good faith throughout’ and accepts that this was not ‘a deliberate attempt to evade the rules’. The Electoral Commission did not seek forfeiture of the donations.

“Progress and Movement for Change fully accept that we made an administrative error when conducting permissibility checks on the donations from Lord Sainsbury.

“Movement for Change likewise believed that as a member of the House of Lords the donor continued to be registered at all times.

“This was a mistaken, though genuine, belief on our parts. Given our support for the regulatory regime, and recognition of the errors made on our parts, both organisations chose not to appeal the penalties.”

Lord Sainsbury was not available for comment immediately. The House of Lords said that he had been granted a leave of absence.